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Chinese Government Vows to Battle Cryptocurrency Scams
Chinese Government Vows to Battle Cryptocurrency Scams

Will China Be Able to Stomp Out Scams in Cryptocurrencies?

 

The impact of the Chinese market on Bitcoin & cryptocurrencies is huge. The majority of cryptocurrency mining takes place in the country, and a few notable cryptocurrency projects originated from there. China also contributes to the global demand of cryptocurrencies as trading is popular there.

In recent weeks the Chinese government has shown a change in policy in regards to blockchain technology and cryptocurrencies. This includes the removal of cryptocurrency mining from the list of unwanted industries & plans for a digital version of Chinese Yuan called the DCEP.

 

China's Cautious Approach to Cryptocurrencies & Blockchain

While government officials praise blockchain technology and seemed to flip their hardline approach, they are also adamant to regulate the space. This includes severe penalties for fundraising in cryptocurrencies (ICO/IEOs) and possibly pump & dumps.

As posted by Primitive Ventures Founder & Twitter personality, Dovey Wan, Shenzen is following Shanghai's rulings.


For those that don't speak Chinese, here are some key notes:

[Shenzhen issued a risk warning against the illegal activities of "virtual currency"] The risk suggestion said that in the near future, with the promotion and promotion of blockchain technology, virtual currency speculation has risen, and some illegal activities have shown signs of resurgence. The Office of the Leading Group for Special Remediation of Internet Finance Risks in Shenzhen will conduct investigation and evidence collection for illegal activities. Once discovered, it will be dealt with seriously in accordance with the "Announcement on Preventing the Risk of Subsidy Issuance of Financing". (China Securities Network)

&

However, in the near future, with the promotion and promotion of blockchain technology, virtual currency speculation has risen, and some illegal activities have shown signs of resurgence. For example, some enterprises organize virtual currency transactions in the name of "blockchain innovation"; The blockchain application scenario is grounded, etc., issuing virtual currency in the form of "xx coins" and "xx chain", publishing white papers, fictional use of ecology, raising funds or virtual currency assets such as Bitcoin and Ethereum; ICO projects, virtual currency trading platforms, etc. provide publicity, drainage, agency trading services.

It appears that ICOs & IEOs will remain banned in China and smaller altcoins might suffer as a result. This is a move that could strengthen major cryptocurrencies at the expense of smaller alts. Lets just hope that China won't overregulate cryptocurrencies.

 

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Written by Jonathan Ganor

Writer & cryptocurrency aficionado

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